On Monday, the European Commission imposed a record €550 million (approximately $629 million) fine on China’s online market, AliExpress, owned by Alibaba, for failing to effectively combat the sale of counterfeit and unsafe products.
This fine is the largest since the implementation of the EU’s Digital Services Act (DSA). Just a few months before this penalty, another Chinese online retailer, Temu under PDD Holdings, was fined €200 million for similar violations.
In a statement, Henna Virkkunen, Vice President for Technical Sovereignty, Security, and Democracy at the European Commission stated, “The illegal spread of counterfeit clothing, unsafe toys, dangerous cosmetics, and other harmful products is not an inevitable cost of online shopping – it is a failure by AliExpress to fulfill its obligations under the Digital Services Act.”
She emphasized that “scale is not an excuse; platforms must systematically identify and address risks to ensure consumers can shop safely online. Today, we are holding AliExpress to this standard and requiring it to take action.”
Virkkunen pointed out that AliExpress had 193 million users in Europe last year, while Shein had 156 million and Temu had 130 million. “One-fifth of Europeans say they shop on these three platforms every month.”
In response to the fine, AliExpress stated in an email to the Associated Press that since the DSA came into effect, the company has invested heavily in risk assessment and product safety. The company disagrees with this “asymmetric fine,” believing it does not fully reflect the compliance framework established by AliExpress and the significant improvements made. AliExpress stated that it is carefully reviewing the decision and considering all feasible responses.
The EU’s fine targets AliExpress’s actions at least until June 2025. The European Commission issued a preliminary ruling then, stating that AliExpress had not adequately addressed illegal product sales and accepted AliExpress’s commitment to optimize its system. Now, AliExpress must submit an action plan by October 20 outlining specific measures to “correct its failure to fulfill its obligations in assessing and mitigating systemic risks.”
The Digital Services Act aims to safeguard users’ online security, prevent the spread of illegal and harmful content such as promoting genocide or eating disorders, while protecting Europeans’ privacy and freedom of speech rights.
It is worth noting that less than three weeks before the EU issued this fine, Alibaba agreed to pay $600 million to settle disputes with the US government. The US accused the Hangzhou-based company of selling and importing illegal drugs, controlled substances, regulated chemicals, and pill-making equipment within the US. Additionally, last June, AliExpress agreed to take measures to combat potential illegal adult content on its platform, avoiding fines of up to 6% of its global annual revenue.
On the other hand, the European Commission began investigating another Chinese e-commerce platform, Shein, in February this year after French regulators found suspiciously childlike sex dolls for sale on the platform in 2025. Shein responded that it has invested heavily to ensure compliance with EU regulations.
When Temu received a €200 million fine in May, it also disagreed with the regulatory authorities’ decision, describing the penalty as “asymmetric.”